Title
Resolution to Authorize a Sole Source Purchase Order to AIS Construction Equipment Corporation, of New Hudson, Michigan, for Fleet Parts and Service (Not to Exceed $70,000.00)
Memorandum
The proposed resolution authorizes the purchase of equipment replacement parts with related accessories and services in an amount not to exceed $70,000.00 per year from AIS Construction Equipment Corporation for FY24 and FY25, subject to the availability of funding in FY25. While the requested purchasing authority on this item is less than the $75,000.00 City Council threshold, this specific item per City Charter needs City Council approval because it is a sole source purchase greater than $25,000.00.
AIS Construction Equipment Corporation is the local dealer for John Deere parts and service. AIS also completes our annual ANSI inspections on our John Deere equipment. The advantages of sole source supply include reduced inventory requirements and the familiarity that mechanics have to diagnose and repair equipment in a timely manner.
The City currently has over 20 pieces of John Deere equipment including backhoes, loaders, tractors, utility vehicles, mowers and excavators. The requested amount for each fiscal year is based on fleet’s regular maintenance history for these vehicles.
Budget/Fiscal Impact: Adequate funding for the purchase of equipment parts and services has been budgeted in the approved FY24 Fleet Services Operations and Maintenance Budget. Approval of the FY25 purchase order would be subject to the availability of funds.
AIS Construction Equipment Corporation complies with the requirements of the City’s Conflict of Interest and Non-discrimination Ordinances.
Staff
Prepared by: Matthew J. Kulhanek, Fleet & Facilities Manager
Reviewed by: John Fournier, Deputy City Administrator
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, AIS Construction Equipment Corporation of New Hudson, Michigan, is the local dealer for John Deere parts and services used to maintain the City of Ann Arbor fleet;
Whereas, AIS Construction Equipment Corporation complies with the City’s Conflict of Interest and Non-discrimination Ordinances; and
Whereas, Adequate funds for the purchase of these replacement parts and services are available in the approved FY24 Fleet Services Operations and Maintenance Budget;
RESOLVED, City Council approves a sole source purchase order to AIS Construction Equipment Corporation in an amount not to exceed $70,000.00 in FY24 and not to exceed $70,000.00 for FY25 subject to the availability of funding in FY25; and
RESOLVED, That Council authorizes the City Administrator to take the necessary administrative actions to implement this resolution.